Dáil Éireann Debate, Wednesday - 6 March 2019
151. Deputy Richard Boyd Barrett asked the Minister for Business, Enterprise and Innovation her plans to protect high street retail in view of the increasing impact of online shopping; and if she will make a statement on the matter. [11008/19]
View answerThe Retail Consultation Forum, which I chair, enables key issues affecting the retail sector to be discussed, with a view to identifying practical actions which could be taken by Government, or by industry itself, to support sustainable jobs growth in the sector. As the largest private sector employer in the country (90% Irish-owned) that supports jobs in every city, town and village in the country I understand the importance of the retail sector.
It is clear the retail sector is undergoing an exciting but also challenging transformation as the digital economy provides a different retail experience for consumers across Ireland and beyond. Digitalisation has increased the scope for competition in the retail sector, as reflected in the growth in online shopping and changing consumer preferences in terms of how people are shopping in town centres. Sustaining physical retail outlets requires adaptation: many retailers now offer multiple sales channels to sell their goods, from physical stores, to social media, mobile apps and websites.
Towns are places not only to live in, but to work in, do business in and invest in. The Retail Consultation Forum and my Department produced 'A Framework for Town Centre Renewal' in 2017 to help towns and villages across Ireland with a step by step plan for town centre renewal, which brings together all the key stakeholders in the town to work collaboratively to enhance their local town or village. At a collaborative level, Town groups can work together to improve footfall and customer experience in town centres through various measures such as enhancing accessibility, public spaces, and tackling vacant property. For detailed advice, Town groups can engage with recommendations set out in the Framework.
The Framework also serves as a support document for towns and villages applying for funding streams under Project 2040 including; the €2 billion Urban Regeneration and Development Fund and the €1 billion Rural Regeneration and Development Fund which can be leveraged to support the regeneration and viability of town centres.
All businesses, regardless of size or sector, in today’s competitive environment must ensure to build their online capability in order for them to expand their market reach nationally and internationally and enhance their competitiveness. Retailers are now operating through an omni-channel approach where their physical and online stores complement each other.
Last September, I introduced a new pilot Online Retail Scheme administered by Enterprise Ireland, with a total fund of €1.25m. I announced eleven successful applicants from Call 1 on the 1st March 2019 in Skibbereen, Co.Cork. A second call will issue later this year. The pilot Online Retail Scheme supports retail businesses of 20 employees or more who are ready to strategically grow their online capability. Eligible expenditure under the Scheme includes activities such as research, strategy development, implementation and training. In recognition of the strong role the retail sector plays in supporting regional development and vibrant communities, at least 50% of the total number of grants awarded under the Scheme will be prioritised for retail SMEs with their headquarters outside of county Dublin, subject to applications meeting the minimum standards required.
Retailers can also engage with the Local Enterprise Offices (LEOs) as the first-stop-shop front line service assisting in delivering business growth and jobs for the small & micro-enterprise sector. The LEOs are the first port of call for anyone who wishes to start or expand a business, in terms of advice, training, sign posting to other support providers and, in certain circumstances, grant support.
The LEOs nationwide actively promote the Trading Online Voucher Scheme (TOVS) on behalf of the Department of Communications, Climate Action and Environment. The TOVS offers matched financial assistance of up to €2,500, along with training and advice, to micro companies (10 or less employees) who want to establish an online presence for the first time, or who wish to expand a basic existing website to incorporate a more substantive online trading capacity.
Since the start of the scheme in July 2014 to date over 5,000 micro companies have availed of the TOVS including 1,103 LEO client companies.
The LEOs also offer a wide range of short training programmes to support their clients in building their online presence and to compete in the online marketplace. These programmes are focused on different elements which aim at maximising outputs from investment in online trading such as:
- Marketing, focused mainly on development of an online/mobile marketing strategy
- Social Media, with the majority of programmes focused on educating the client base on how to use the different social media platforms to support their business
- eCommerce Sales Strategy, including how to convert website visits into sales
- Search Engine Optimisation, including web analytics and video optimization for web.
As Chair of the Retail Consultation Forum, I will continue to engage with the retail sector in relation to opportunities and challenges arising in relation to digitalisation in the sector.
